Cochlear execs receive pay slap-down

COCHLEAR has received its "first strike" on executive pay with more than 30 per cent of shareholders voting against the company's remuneration package.

Chairman Rick Holliday-Smith apologised to shareholders following the slap-down but defended the company's pay policy saying it was necessary to keep it globally competitive.

The contested remuneration packages, which relate to the past financial year, have already been paid.

If, however, the hearing aid maker receives a "second strike" next year shareholders will vote on whether to spill the board.

Pay packages receive a strike if more than 25 per cent of shareholders vote against them.

The shareholder revolt rounds out a horror year for the company which saw profits dive after it was forced to carry out a mass recall of its Nucleus CI500 device.

The company's net profit fell from $180.1 million to $56.8 million in the year to June 30.

The shareholders met in Sydney today and voted against the awarding of share options worth more than $1 million to chief executive Chris Roberts under a long-term incentive plan.

The ASA has said Mr Roberts already has ample incentive to perform through his ownership of almost $50 million worth of Cochlear shares. Other proxy advisory groups have also called on shareholders to vote against the resolution relating to the granting of share options.